Good morning and welcome to the Trustco Fourth Quarter 2016 Earnings call and webcast. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today’s presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touchtone phone. To withdraw your question, please press star then two. Before proceeding, we would like to mention that this presentation may contain forward-looking information about Trustco Bank Corp. New York that is intended to be covered by the Safe Harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various risks, uncertainties, and other factors. More detailed information about these and other risk factors can be found in our press release that proceeded this call and in the Risk Factors and Forward-Looking Statements sections of our annual report on Form 10-K and as of updated by our quarterly reports on Form 10-Q. The statements are valid only as of the date hereof and the company disclaims any obligation to update this information except as may be required by applicable law. Today’s presentation contains non-GAAP financial measures. The reconciliations of such measures to the most comparable GAAP figures are included in our earnings press release, which is available under the Investor Relations tab of our website at trustcobank.com. Please also note this event is being recorded. I would now like to turn the conference over to Mr. Robert J. McCormick, President and CEO. Please go ahead.

Good morning, everyone. As the host said, I’m Rob McCormick. I thank you for joining us this morning to hear a little more about our company. As usual, joining me on the call today is Scot Salvador, our Chief Banking Officer, and Mike Ozimek, our Chief Financial Officer. Kevin Timmons, who most of you know, is also in the room. The plan is for me to start with a summary of our quarter, hitting the highlights, then turn it over to Mike for the detail and the numbers. He will then hand off to Scot, who will discuss our operations, mostly deposits and the loan portfolio. We’re happy to report a good fourth quarter here at the bank. Our net income of $10.8 million was down slightly from third quarter of ’16 but up about 6% from the same quarter last year. Our deposits grew to almost $4.2 billion. This was up about $100 million more than the same period last year. We’re happy to report our time deposits dropped by about $50 million, meaning we’ve been able to grow our base core deposits, reducing our reliance on higher priced time accounts. Total loans were up to almost $3.4 billion. Growth was driven by residential mortgage lending operations. That portfolio is solidly over $2.8 billion. Commercial loans were up over last quarter, down year-over-year. I think most of you know our position on commercial loans. The combination of loans and deposits resulted in slight margin expansion from the same time last year. Our margin of 3.11 is a little higher than last year, and as I said last quarter, we’ll take anything we can get. Now is a good time to remind the group, all of our business is done in our branches. We do not buy loans. We accept brokered deposits. We also do not pay premium rates for large CDs. Those that are regular followers of our company remember that we have a relatively strong liquidity position and a large investment portfolio with short maturities. Our asset quality continued improvement as non-performing assets to total assets fell to 0.6% for the quarter. Our loan loss reserve was at 1.28% of total loans with an allowance coverage ratio that was 1.8 times. We still operate 145 full-service banking offices. Our efficiency ratio of 54.7, down for the quarter--down from the same quarter year-end 2015. Our tangible equity ratio is around 9% this quarter and our total assets held over $4.8 billion. Our return on average assets was 0.9%, up from the prior year, and our return on equity was right around 10%. No update on the formal agreement with the OCC. Great progress has been made, and we remain confident we will emerge a stronger company. We’re proud of our fourth quarter results and look forward to a solid 2017. Now I’ll turn it over to Mike for detail on the numbers.

Thank you, Rob. I will now review Trustco’s financial results for the fourth quarter and full year of 2016. Net income increased to $10.8 million in the fourth quarter of 2016 or 6.1% compared to $10.2 million for the fourth quarter of 2015. The full-year 2016 results were $42.6 million compared to $42.2 million for 2015. Now let’s start with the changes in the balance sheet. We saw sustained loan growth during what is normally a quiet banking season due to holidays and the weather. As expected, the sustained growth continues to be concentrated in the residential real estate portfolio. The residential mortgage loan portfolio increased by $50.4 million or 1.79% on average during the quarter, and $155.7 million or 5.74% from the fourth quarter of 2015. This continues a positive shift in the balance sheet from lower yielding investments to higher yielding core loan relationships. Total average investment securities, which includes the AFS and HDM portfolios, decreased $4.3 million during the quarter or 0.63%, and increased $22.8 million or 3.47% on average from the fourth quarter of 2015. As you have heard in prior calls, our focus in on traditional lending and conservative balance sheet management. This has enabled us to be able to produce consistent earnings. In regards to our investment portfolio, we will continue to take advantage of opportunities as they are presented during 2017 and beyond, fully aware of the potential for a sustained rising rate environment. During the last month of the quarter, we did take the opportunity to invest $20 million in a mix of mortgage-backed securities and agencies at an average yield of approximately 2.3%. On the funding side of the balance sheet, in spite of the third quarter dip which is notoriously difficult quarter to attract deposits due to property and school…

Okay Mike, thanks. For the fourth quarter, we experienced solid growth in loan portfolio. Total loans increased $43 million and year-over-year have increased $137 million. The quarter’s net growth of $43 million represents a 1.26% increase and is significantly above last year’s fourth quarter. Residential loans grew by $41 million on the quarter with commercial loans increasing $1.5 million. Our Florida market provided 65% of the net growth for the quarter as customer awareness of our product continues to increase and market activity remains strong. The holidays and year-end are traditionally a slower period for mortgage activity. Although down approximately 19% from the third quarter, backlog at year-end is up approximately 8% over last year. We expect that loan activity will pick up as we progress deeper into the quarter and are pleased to be starting the new year with a backlog ahead of last year’s total. Rates have risen modestly in recent weeks and our current 30-year fixed rate is 3.99%. Non-performing loans decreased on both the quarter and year. At year-end, they stood at $25 million, down from $26 million at September and $28.3 million last year. On a percentage basis, non-performing loans were equal to 0.73% of total loans in December versus 0.86 last year. The net charge-offs for the fourth quarter decreased year-over-year and on an annualized basis of 0.08% are at their lowest level since the first quarter of 2008. The coverage ratio, or allowance for loan loss in non-performing loans stands at 175% at year-end, up from 158% the prior year. Rob?

Thanks Scot. We would be pleased to answer any questions you may have.

[Operator instructions] Our first question comes from Alex Twerdahl of Sandler O’Neill. Please go ahead

Hey, good morning guys.

Good morning, Alex.

First off, I was wondering if you can just talk about what your expectations are for both loan demand as well as sort of extended duration in your loan portfolio, if rates continue to rise. It seems like we’ve been talking about when rates rise for a long time, but the case today seems like maybe it’s a little bit better for the 10-year to continue going higher. What are your expectations for--have you seen--you talked about the pipeline a little bit, but have you seen a change really in customer demand, and what are your expectations for the duration?

Well, Scot said our backlog is pretty good as we enter 2017, Alex. I think you are seeing the drying up of the refinance, but that’s a double-edged sword for us. We get the benefit of not having our portfolio refinanced away from us so we retain those loans, and the purchase volumes and the purchase numbers have been pretty good on that front. As far as extension, we have not really seen tremendous extension within our portfolio so far, so I think we’re staying under the same parameters we were staying under.

Okay, great. It seems like really over the last year and a half, we’ve seen kind of a steady decline in the level of reserves to total loans, kind of 2 basis points per quarter, call it, for the last six or seven quarters. Is that something we should expect as we continue into 2017?

Well, you know there’s going to be a lot of action, and Mike can speak to this, and Kevin, but there’s going to be a lot of action in loan loss reserve, generally speaking. As management, Alex, I don’t think you can have a large enough loan loss reserve, so there’s constant pressure on both sides to keep that reasonable and rational and on the other side to make sure it’s bolstered enough. But we’re going to go almost a loan-by-loan analysis with regard to reserves, so who knows what will happen when we fully implement that. But I’d like to keep that as high as we possibly could.

Is there a look-back period in terms of charge-offs that kind of helps to govern where the reserve needs to be?

I think it’s about four years, isn’t it?

Yes.

Four years - okay. Then finally, it seems like in the last two quarters, the tax rates just jumped up a little bit over a percent. What’s the tax rate to use for ’17?

Mike?

Where we ended 2016 is where you need to be.

Thirty-eight percent-ish?

Yes, we always look to improve upon that, but that’s where we’re at right now.

Okay. All right, thanks for taking my questions.

Thanks Alex.

This concludes the question and answer session. I would now like to turn the conference back over to Mr. Robert McCormick for any closing remarks.

Thank you for your interest in our company and enjoy the rest of your week. Thank you.